Britain’s Competition and Markets Authority said on Friday that Vodafone’s proposed merger with rival CK Hutchison faces a thorough investigation unless the two mobile phone operators provide a “meaningful solution” to the regulator’s concerns. Then he announced.
Vodafone and CK Hutchison’s British brand Three will take five working days to respond.
The CMA launched an investigation into the proposed partnership in January. In its latest update on Friday, the CMA said it was concerned that the deal would lead to a significant reduction in competition, result in higher prices for consumers and create an unfavorable environment for virtual mobile network operators.
Virtual mobile network operators (MVNOs) are new network operators that have sprung up over the years and use the underlying infrastructure of existing carriers rather than being created from scratch.
announced last yearThe Vodafone and CK Hutchison deal will see the UK operations of both brands merged, giving Vodafone 51% control and CK Hutchison becoming a minority shareholder. Vodafone UK CEO Ahmed Essam will lead the new business, with UK chief financial officer Darren Purkiss taking on the CFO role.
This breaking news article is being updated.